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Orient-Express Hotels rebuffs Tatas’ proposal again

NEW YORK: U.S. listed Orient-Express Hotels, in which Tata group’s Indian Hotels has acquired 11.5 per cent stake for about $247 million, has rejected an offer for a strategic alliance with the Indian conglomerate.

In a reply to the Tatas’ proposal for a possible association, Orient-Express, which owns New York’s prestigious Club 9 Restaurants and a number of luxury hotel brands in the U.S. and other countries, said in a statement that aligning with the Tatas’ ‘predominantly domestic Indian hotel chain’ would adversely impact the brand value of its premium properties. Indian Hotels had first disclosed on September 14, a 10 per cent stake acquisition in Orient through open market purchases and had subsequently sought a possible alliance between the two companies.

Despite Orient-Express rejecting its proposal, the Tatas have been pursuing for a meeting to discuss a possible deal and again reminded the company of its proposals in November.

Subsequently, Indian Hotels said on Friday that it had acquired a further 1.5 per cent stake, taking its total stake to 11.5 per cent.

On Friday, Indian Hotels once again reiterated its intention to pursue a possible alliance with proposals for bringing its non-Indian hotels under the Orient-Express fold, holding of minority stakes in each other’s equity capital and representation on each other’s boards.

However, Bermuda-based Orient Express, through a statement issued on Monday, once again rejected the proposal. “Orient-Express Hotels had previously rejected a similar proposal from the company. The Board of Orient-Express Hotels continues to consider that the IHCL proposal is not in the interests of Orient-Express Hotels and its shareholders,” Orient said. — PTI

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